Pulsar: 4x And Counting
While the major stock indices have so far had a good 2024, when Pulsar Helium came to market on the TSX-V in August last year, the backdrop was not ideal. This was especially the case as far as small caps, and explorers of all kinds. For helium explorer and developer PLSR, the lay of the land was even more complicated. Dominated by UK shareholders, it was a tough call as to whether listing in London, or across the Atlantic would be the thing to do. This is especially as its key prospect was and is in Minnesota, USA. In the end the company chose the TSX-V in Canada. Given the massive success of the company this year, fans of the London market will be wishing that the now £50M market cap company (CAD$87M) was listed on the LSE. This was especially after the big reveal in February when gas sample tests from its Jetstream #1 appraisal well in Minnesota showed helium contents of up to 13.8%.
The Topaz Project
Of course, it would be easy for a company to sit on its laurels after proving a cynical stock market wrong and announcing the highest concentrations ever in North America. Indeed, one might ask given this why the share price is not up more than the 4x so far?
Fresh Drivers
The drivers for this look like they are on tap from this month. The initial trigger was last week’s news that spring road restrictions have been lifted, allowing PLSR to return to work at its helium asset near Babbitt. This will allow the company to consolidate the data it already has regarding the Topaz project, something which is likely to be the driver for further share price gains. Also helping out in just as concrete way is the way that in the past week over CAD$5M has worked its way into the PLSR coffers, as a result of the exercise of options. The timing of this could not be better as Pulsar CEO Thomas Abraham-James said the early exercise of these warrants strengthens its treasury at an exciting and important time for the Company. Proceeds from the warrant exercise will allow it to expand its 2024 work programs and accelerate its efforts to unlock the full value of the Topaz discovery.
Set To Retest The Share Price Highs?
The logical thing to happen as we go into summer would be for a retest of the best levels at CAD$1.70. This is given the way that the company is now cashed up with the warrants exercise, and off the back of the fresh updates, we should see it PLSR consolidate not only the share price gains, but also the fundamentals of the company. Indeed, given the overall backdrop of a rising global helium demand and a supply crunch, the timing of the company’s discovery could not be more blessed. It is also something that lays to rest the historical issues that many have had with investing in helium exploration in quite a definitive way.
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